Fee-only, conflicts and bizarre allocations

What are the conflicts of interest for fee-only advisors? I just started working at a company that sits at an intersection with the financial industry, and I'm trying to get a better understanding of how this works, because a lot of clients have a relationship with these advisors (fee-only). ​ I've already read in the literature that they tend to be more conservative and go for assets that don't fluctuate much, because the firm's cash flow is proportional to the client's AUM. In other words, it'